Business Exit Planning
Selling a Merchandise Marts Business
Is the economy still a little shaky for a business sale? Sure it is. Yet merchandise marts businesses haven't heard the news and are reporting steady action on the business-for-sale market.
In a down economy, many merchandise marts business sellers wait to list their businesses until they see signs that the economy has rebounded, making it difficult to accurately evaluate the number of merchandise marts businesses that are actually for sale.
If you're ready to move on, now is the right time to sell your merchandise marts business.
Legal Concerns
We run into a lot of merchandise marts business sellers who intend to wait until the final contract to negotiate details. Big mistake. With few exceptions, sale structure is hammered out early, in the Letter of Intent . If you are seeking buyer concessions, the time to address them is before the Letter of Intent is drafted. So after consulting with your broker and attorney, make sure you're comfortable with the terms of the Letter of Intent. If not, everything you do to close the sale of your merchandise marts business may be a waste of time.
Current Market Conditions
No one plans to sell a merchandise marts business in a down economy. Although the economy is gaining steam, recovery is slow and entrepreneurs are holding their cards close to their vests. However, many business sellers don't realize that a full economic rebound can have devastating consequences, particularly if sellers who have waited to list their businesses suddenly create a glut in the business-for-sale marketplace. So what's our point? The economy isn't the most important factor in the sale of your business. Instead, you should be focusing on making your merchandise marts business as attractive as possible so to buyers right now.
When to End Negotiations
If the devil is in the details, the negotiation stage of a merchandise marts business sale is the devil's playground. Yet eventually many negotiations reach a stage where further discussion is pointless. In a merchandise marts business sale, a stalled negotiation can be an indication that the deal is dead. At this point in the process, an awareness of negotiation parameters really pays off. If the buyer is unwilling to accept your minimum demands, it's time to end negotiations and move on to the next prospect.
Share this article
Additional Resources for Entrepreneurs